Venture capital investment last year slumped to its lowest level since 1997, as investors continued to nurse existing portfolio companies and carefully scrutinize potential deals.
Nationally, $18.2 billion was invested in 2003, down 15 percent from the $21.4 billion venture investors pumped into start-ups the previous year.

“I think the numbers look fine. I wouldn't call it rosy, though,” says Kirk Walden, national director of venture capital research at PricewaterhouseCoopers. “I think everybody would have liked to have seen 2003 come out above 1998 levels, but the fact is that did not happen, and it might not happen in 2004.”

The fourth quarter did offer entrepreneurs some signs of hope as both national and local venture investments ticked up slightly, according to the Money Tree Survey, conducted by PricewaterhouseCoopers, Thomson Venture Economics and the National Venture Capital Association.

Nationally, $4.9 billion was invested in 679 companies in the three months ended December 31, up from $4.4 billion the preceding quarter.
Biotechnology companies captured the largest portion of venture funding throughout the nation during the fourth quarter, but software remained king in many regions.

Nationally, the life sciences industry, which includes biotech firms and medical device companies, attracted $4.89 billion, or 27 percent of all venture funding last year.
The software industry accounted for 20 percent of national investments, or $3.6 billion.